Mechanic's Lien vs Lien Waiver
A mechanic's lien is a claim against property for unpaid work; a lien waiver releases or waives lien rights for payment received or expected.
Mechanic's Lien
- Payment protection
- Unpaid labor or material claims
- Legal remedy tracking
Lien Waiver
- Progress payment backup
- Owner risk reduction
- Final payment documentation
Key differences
| Point | Mechanic's Lien | Lien Waiver |
|---|---|---|
| Purpose | Secure payment rights. | Release payment-related rights. |
| When used | When payment is disputed or unpaid. | During progress and final payment. |
| Direction | Creates or preserves a claim. | Reduces or removes claim risk. |
Example in context
An owner may require lien waivers with each pay application to reduce the chance of later mechanic's lien claims.